Deal brewing for new Husky Energy (T.HSE) platform off Newfoundland

PLACENTIA, N.L. - Sources say Newfoundland and Labrador Premier Kathy Dunderdale will announce a deal today with Husky Energy to build a new offshore oil platform for the West White Rose Extension.

A news conference is planned in Placentia, N.L., later today.

Sources not authorized to speak in advance of the news conference have confirmed that construction of a new wellhead platform supported by a concrete gravity structure will be announced.

The structure is to be built at a dedicated graving or dry dock site in Argentia, N.L.

The platform will be used to draw oil from the West White Rose Extension site about 350 kilometres east of St. John's.

Husky (TSX:T.HSE, Stock Forum) has estimated up to 81 million barrels of oil can be recovered from the site using subsea flow lines to the SeaRose production vessel.

First oil is forecast for 2017.

The signing of a related benefits deal with the province is expected to speed up filing of an adjusted development plan before construction starts next year.

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